Tuesday, 16 April 2013

Gold and Silver Ratio

Much has been talked about on the news on Monday about the huge drop in gold.

And right so, here's the chart for gold...that 9% one day drop is insane.  Part of me wonder if the gold people flocked to bitcoin and gold got the rug pulled out underneath.


However, gold obscures another metal, silver - the poor man's gold.  Silver took a bigger hit than gold on monday, dropping 12.6%!  That's a huge drop.  Below is the same chart for silver.



Interestingly, the gold to silver ratio is incredibly messy with all the fluctuations between these two commodities.  The ratio just hit a 1 year high but the 3 year chart shows the craziness that was 2011.  The gld:slv ratio has been relatively stable since 2012.  So expect silver to mirror most of gold's move...for better or for worse.



One thing I know...I'm glad I'm not John Paulson.  Haha...sorry, that's just mean I guess.


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